EVOLUTION PETROLEUM CORP (EPM): Results of Operations and Financial Condition
EVOLUTION PETROLEUM CORP (EPM) filed an SEC Form 8-K — Results of Operations and Financial Condition. EXHIBIT 99.1 Evolution Petroleum Reports Fiscal Fourth Quarter and Full Year Fiscal 2026 Results – Fiscal Q4 Net Income Rebounds from Q3 to $4.6 Million – – Adjusted EBITDA More Than Doubles Sequentially to $6.5 Million – HOUSTON, TX — September 15, 2026 (GLOBE NEWSWIRE) — Evolut
How this was made
The 30-second read
Why it matters
Earnings beat and dividend continuity suggest near‑term upside, but acquisition financing adds leverage risk.
Market read
First‑time earnings disclosure for a micro‑cap energy stock; relevant for traders tracking small‑cap oil plays.
What to watch
Potential exposure to commodity price volatility and higher debt service costs.
Fiscal Q4 net income rebounded from Q3 to $4.6 million and Adjusted EBITDA more than doubled sequentially to $6.5 million.
Fiscal Q4 revenue rose 15% year over year and 20% sequentially, while GAAP net income recovered to $4.6 million from a Q3 loss. However, quarterly production declined 4% year over year, adjusted net income was a loss, and Adjusted EBITDA declined 24% year over year amid realized derivative losses.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenues, Q4 2026GAAP | $24,208 (in thousands) | 20% | 15% |
| Crude oil revenues, Q4 2026GAAP | $16,514 (in thousands) | – | – |
| Natural gas revenues, Q4 2026GAAP | $4,413 (in thousands) | – | – |
| Natural gas liquids revenues, Q4 2026GAAP | $3,281 (in thousands) | – | – |
| Lease operating costs, Q4 2026GAAP | $12,782 (in thousands) | – | – |
| Total lease operating costs per BOE, Q4 2026other | $20.35 | – | – |
| Depletion, depreciation, and accretion, Q4 2026GAAP | $5,606 (in thousands) | – | – |
| General and administrative expenses, Q4 2026GAAP | $2,355 (in thousands) | – | – |
| Income (loss) from operations, Q4 2026GAAP | $3,465 (in thousands) | – | – |
| Net gain (loss) on derivative contracts, Q4 2026GAAP | $2,603 (in thousands) | – | – |
| Interest expense, Q4 2026GAAP | $(969) (in thousands) | – | – |
| Net income (loss), Q4 2026GAAP | $4,614 (in thousands) | NM | 35% |
| Diluted net income (loss) per common share, Q4 2026GAAP | $0.13 | – | – |
| Adjusted net income (loss), Q4 2026non-GAAP | $(587) (in thousands) | (80)% | NM |
| Diluted net income (loss) per common share excluding selected items, Q4 2026non-GAAP | $(0.02) | – | – |
| Adjusted EBITDA, Q4 2026non-GAAP | $6,522 (in thousands) | 110% | (24)% |
| Average daily production, Q4 2026other | 6,901 BOEPD | 3% | (4)% |
| Average realized equivalent price, Q4 2026other | $38.55 per BOE | – | 20% |
| Total revenues, fiscal 2026GAAP | $86,343 (in thousands) | – | – |
| Income (loss) from operations, fiscal 2026GAAP | $3,480 (in thousands) | – | – |
| Net income (loss), fiscal 2026GAAP | $(2,429) (in thousands) | – | – |
| Diluted net income (loss) per common share, fiscal 2026GAAP | $(0.08) | – | – |
| Adjusted net income (loss), fiscal 2026non-GAAP | $(3,125) (in thousands) | – | – |
| Adjusted EBITDA, fiscal 2026non-GAAP | $24,924 (in thousands) | – | – |
| Average daily production, fiscal 2026other | 7,077 BOEPD | – | – |
| Net cash provided by operating activities, Q4 2026GAAP | $6,799 (in thousands) | – | – |
| Net cash provided by operating activities, fiscal 2026GAAP | $23,518 (in thousands) | – | – |
Capital returns
- $4.3 million returned to shareholders in the form of cash dividends during fiscal Q4.
- $16.9 million returned to shareholders in the form of cash dividends for fiscal year 2026.
- Cash dividend of $0.12 per share of common stock declared on September 10, 2026, payable on September 30, 2026, to stockholders of record on September 21, 2026.
- Common stock dividends paid were $(4,330) (in thousands) in Q4 2026 and $(16,943) (in thousands) in fiscal 2026.
- Common stock repurchases, including stock surrendered for tax withholding, were $0 (in thousands) in Q4 2026 and $(225) (in thousands) in fiscal 2026.
- To date, Evolution has returned approximately $151.7 million, or $4.53 per share, to stockholders in common stock dividends.
What drove it
- Q4 total revenue increased 15% year over year primarily because average realized equivalent prices increased 20%, partially offset by a 4% decline in average daily production.
- Higher realized oil and NGL prices together with increased production drove the 20% sequential revenue increase.
- Oil accounted for 68% of Q4 revenue, natural gas accounted for 18%, and NGLs accounted for 14%.
- Crude oil realized price was $90.74 per BBL, compared with $60.82 per BBL in Q4 2025; NGL realized price was $32.49 per BBL, compared with $25.50 per BBL.
- SCOOP/STACK Q4 production was 1,275 BOEPD, up about 14% from the prior-year quarter, while LOE declined to $10.33 per BOE from $11.05 per BOE.
- Total proved reserves were 27.2 MMBOE, compared with 27.1 MMBOE at June 30, 2025, replacing more than 100% of fiscal 2026 production of 2.6 MMBOE.
Concerns
- Q4 average daily production of 6,901 BOEPD was below 7,198 BOEPD in the year-ago quarter; the company attributed the decline largely to expected declines from new wells that produced at flush rates in Q4 fiscal 2025.
- Q4 Adjusted EBITDA of $6.5 million was below $8.6 million in Q4 fiscal 2025, primarily because the current-year quarter had realized derivative losses versus realized derivative gains in the prior-year quarter.
- Adjusted net loss was $0.6 million in Q4 2026, compared with adjusted net income of $1.1 million in the year-ago period.
- Natural gas realized price was $2.13 per MCF, compared with $2.76 per MCF in Q4 2025 and $3.70 per MCF in Q3 2026.
- Fiscal 2026 net loss was $(2,429) (in thousands), compared with net income of $1,473 (in thousands) in fiscal 2025, and Adjusted EBITDA declined to $24,924 (in thousands) from $29,806 (in thousands).
- Lease operating costs were $12.8 million in Q4 2026, compared with $11.4 million in the prior-year quarter; the prior-year quarter included a $1.9 million Barnett Shale operator credit related to a joint venture audit.
What to watch
- Production and cash-flow contribution from the August 20, 2026 Permian Minerals acquisition, which includes 832 producing wells, 34 drilled but uncompleted wells, 27 permitted wells, and approximately 1,257 upside locations.
- Timing of fiscal 2027 SCOOP/STACK activity, where approximately ten gross working-interest wells are already expected to be brought online so far.
- Progression of Haynesville and Bossier development, where the Louisiana portfolio had approximately 90 producing gross wells, 16 wells in drilling or completion, 35 pre-permitted wells, and over 60 additional identified gross locations as of July 31.
- TexMex workover and optimization activity and its expected contribution to overall cash flow.
- Use of the temporary borrowing-base increase from $65.0 million to $73.0 million effective from August 20, 2026 until October 20, 2026, unless redetermined earlier.
Balance sheet and cash flow
- Cash and cash equivalents were $6,137 (in thousands) at June 30, 2026, compared with $2,507 (in thousands) at June 30, 2025.
- Outstanding borrowings under the Senior Secured Credit Facility were $56.5 million at June 30, 2026, with $0.8 million in letters of credit outstanding, a weighted average interest rate of 6.69%, and availability of $7.7 million.
- Total liquidity was $13.9 million at June 30, 2026.
- Capital expenditures for oil and natural gas properties were $(1,360) (in thousands) in Q4 2026 and $(7,280) (in thousands) in fiscal 2026.
- Acquisitions of oil and natural gas properties were $(1,680) (in thousands) in Q4 2026 and $(22,988) (in thousands) in fiscal 2026.
- Proceeds from the sale of unproved oil and natural gas properties were $3,093 (in thousands) in Q4 2026 and fiscal 2026.
- On August 20, 2026, Evolution completed the Permian Minerals acquisition for approximately $16.0 million, funded with $12.8 million of net proceeds from a concurrent public offering of 4.3 million common shares and $3.2 million of borrowings under its Senior Secured Credit Facility.
- Pro forma for the Permian Minerals acquisition, Evolution had 40.2 million shares of common stock outstanding and total liquidity of approximately $19 million.
Analysis
Evolution closed fiscal 2026 with a marked sequential recovery. Q4 revenue was $24,208 (in thousands), up 20% from $20,168 (in thousands) in Q3, while GAAP net income recovered to $4,614 (in thousands) from a Q3 net loss of $(8,932) (in thousands). Adjusted EBITDA reached $6,522 (in thousands), more than double $3,107 (in thousands) in Q3. The improvement reflected higher realized oil and NGL prices and increased production sequentially, with average daily production rising to 6,901 BOEPD from 6,700 BOEPD.
Year-over-year Q4 revenue rose 15% as the average realized equivalent price increased 20% to $38.55 per BOE. Crude oil pricing of $90.74 per BBL and NGL pricing of $32.49 per BBL supported the revenue result, although natural gas pricing declined to $2.13 per MCF. Production declined 4% from the year-ago quarter to 6,901 BOEPD. The company attributed that reduction principally to expected decline curves following flush production from new wells placed online in Q4 fiscal 2025.
Profitability showed a divergence between GAAP and non-GAAP measures. GAAP net income increased to $4,614 (in thousands) from $3,412 (in thousands), or $0.13 per diluted share versus $0.10. Yet adjusted net income was a loss of $(587) (in thousands), compared with adjusted net income of $1,129 (in thousands), and Adjusted EBITDA declined to $6,522 (in thousands) from $8,572 (in thousands). The company cited realized losses on derivative contracts in the current-year period versus realized gains in the prior-year period as the primary reason for the Adjusted EBITDA decline. LOE per BOE improved sequentially to $20.35 from $21.49, but the prior-year $17.35 per BOE included a $1.9 million operator credit at a Barnett Shale property.
For the full year, revenue was $86,343 (in thousands), compared with $85,840 (in thousands), and average daily production was essentially unchanged at 7,077 BOEPD versus 7,074 BOEPD. Fiscal 2026 ended with a GAAP net loss of $(2,429) (in thousands) and Adjusted EBITDA of $24,924 (in thousands), versus fiscal 2025 net income of $1,473 (in thousands) and Adjusted EBITDA of $29,806 (in thousands). Operating cash flow was $23,518 (in thousands), down from $33,052 (in thousands), while the company paid $(16,943) (in thousands) of common stock dividends and spent $(22,988) (in thousands) on oil and natural gas property acquisitions.
Capital allocation remained centered on dividends and mineral and royalty expansion. The company declared its 17th consecutive $0.12 cash dividend per common share and completed a subsequent $16.0 million Permian Minerals acquisition financed with public-equity proceeds and additional credit-facility borrowing. At June 30, 2026, cash was $6,137 (in thousands), senior secured credit-facility borrowings were $56.5 million, and total liquidity was $13.9 million. Evolution provided no formal fiscal 2027 financial or operational guidance, but management highlighted anticipated production additions from Permian, SCOOP/STACK, Louisiana mineral and royalty assets, and TexMex optimization activity.
Management, verbatim
Many of the temporary items that weighed on fiscal Q3 rolled off as expected, and fiscal Q4 revenues rose 20% and Adjusted EBITDA more than doubled quarter over quarter.
Kelly Loyd, President and Chief Executive Officer
We added another highly accretive acquisition, with the purchase of our Permian Minerals position, adding over 1,000 near- and long-term undeveloped drilling locations.
Kelly Loyd, President and Chief Executive Officer
This strategy of adding mineral and royalty interests creates more ways to add value and provides greater flexibility for capital allocation.
Kelly Loyd, President and Chief Executive Officer
Not in the filing
stated, not guessed- Formal fiscal 2027 revenue, production, capital spending, operating-cost, tax-rate, earnings, or Adjusted EBITDA guidance was not provided.
- Previous-period outlook was not provided; therefore, no comparison of actual results with prior guidance is available.
- Free cash flow was not reported.
- Gross profit and gross margin were not reported.
- The filing did not report separate operating segments or segment revenue; commodity revenue streams were reported instead.
- A Q4 2026 cash flow from financing subtotal comparison was reported, but percentage changes for cash-flow line items were not reported.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Evolution Petroleum is a small-cap oil and gas producer listed on NYSE American, reporting its FY2026 results and a new mineral royalty acquisition.
Ticker impact
Evolution Petroleum reported Q4 2026 net income of $4.6M and adjusted EBITDA of $6.5M, plus a $16M acquisition funded by a share offering.
Potential modest rally of 3‑5% as investors digest earnings beat and dividend continuation.
First‑time disclosure of earnings and acquisition; small‑cap but material for the stock.
Market effects
Highlights continued strength in the Permian basin and could buoy other small‑cap oil producers.
Positive for Texas‑based energy assets; modest effect on regional energy indices.
Limited to U.S. energy sector; no broad macro impact.
Counterpoint
The acquisition may stretch balance sheet and dilute shareholders, risking downside.
Key entities
- CompanyEvolution Petroleum Corp
Subject of the 8‑K earnings release.
- AssetPermian Minerals
Acquired mineral and royalty interests funded by share offering.
